On January 1, 20X1, Toby Ltd issued $500,000 of convertible bonds. The bonds mature on December 31, 20X5. Interest is payable annually at 6.0 % on Dec 31. The bonds are convertible at the investors' option at the rate of 20 common shares for each $1,000 bond. Similar bonds without the conversion option were selling for $475,000 at time of issuance. The company follows IFRS. Required: a. Prepare the journal entry to record the issuance of the bonds b. Record the journal entry at December 31, 20X1. Start by calculating effective rate on the bon using financial calculator c. The bond is converted to shares on Dec 31, 20X2. Record the journal entry for the conversation